This is how Spain’s minimum wage and its purchasing power, taking into account inflation, have evolved
The increase in the minimum wage for professionals (SMI) to 1.080 euros in 14 installmentsThis Tuesday, the Council of Ministers agreed that it should be the highest in history, not only at current prices, but also at constant prices, that is, taking into account the variation in inflation over the years. The government also does not rule out revising the SMI in the middle of the year to adjust it to the price level if necessary.
The agreement between the government and the unions CC.OO. And UGT It will have retroactive effect from January 1, 2023. The agreed figure is lower than the higher range recommended by the expert committee for which the Ministry of Labor commissioned the studies: an increase range of between 4.6%, up to 1046 euros, and 8.2%, up to 1082 euros.
The final sum is also less ambitious than the unions had been asking for. The UGTT obtained SMI in the amount of 1,100 euros, while CC.OO. It moved between €1,082 of the high band and €1,100. The employers, who were absent from the meeting, proposed an increase of 4%, amounting to 1,040 euros, in 14 payments.
The rise of SMI to 1080€ per month from the current 1000€ would be the second largest rise in the past four decades. With that 8.0% increase, you will have gone from €655 to almost €1,100 in just eight years.
The 8.0% revaluation of the minimum wage for professionals was only outpaced by the 22.3% increase that occurred in 2019, when it moved from €735 to €900. It equals the rise of 8.0% in 2017, when the total rose to €655 to €707 per month divided into 14 payments. You’ll have to go back to the early 80’s to find higher altitudes.
The minimum salary of €1,080 per month is the highest in history taking into account inflation
The minimum wage of 1,080 euros per month is the highest in the history of Spain, not only at current prices, but also at constant prices, i.e. taking into account inflation difference over the years.
In 1979, the minimum wage was 124 euros. The figure, updated at 2022 prices, would be the same as receiving 794 euros today. Despite constant increases over the years, Spain did not pass that level again until 2017. In that year, the minimum wage was set at €707.70, the equivalent of €808.90 today, according to accounts updated with him. Consumer Price Index (CPI) general. Since then it has continued to rise.
The history of the minimum wage among professionals dates back to the Franco regime. In 1963 the minimum wage was set at 1,800 pesetas, about €10.80. At today’s prices, it would be approximately 400 euros. During the last phase of Franco’s regime, the minimum wage was about 8,400 pesetas (€50.50), about €657 today.
Increases in recent years have led to the minimum wage
Increases in the minimum wage were continuing; Although compared to constant prices, there have been periods that have not prevented a decline in purchasing power. Thus, during the 1990s, the minimum wage rose from €300 to €400 in successive annual revisions; However, equivalent to current prices, that would mean a monthly payment of around 700 euros per month today, less than it was at the end of the 1970s.
Increases during the government of Pedro Sánchez brought the minimum wage to its highest levels. The biggest achievement was the transition from 735 euros to 900 euros in 2019, which is equivalent to 1008 euros today; Above the current minimum wage, set at 1,000 euros. The current €1,000 payment, which is currently awaiting review, will start in January 2022.
